What would be the correct pension for a magistrate. Bolojan: “Very few Romanians collect it after a lifetime of work”
Ilie Bolojan declared, on Thursday evening, that no conclusion agreed upon by all involved parties regarding special pensions was reached, but he emphasized two important aspects: the need to increase the retirement age and the reduction of the amount of special pensions compared to the last salary. The Prime Minister of Romania said what would be the amount that a magistrate would receive after retirement, if the reforms desired by the Government are applied.
Ilie Bolojan made the statements during a show. PHOTO: Inquam Photos/George Călin
“Everybody has had their point of view, but we haven't come to a conclusion that is acceptable to both sides, and we haven't come close to a common formula,” said Bolojan, about Wednesday's meeting at the Cotroceni Palace regarding the reform of special pensions.
Regarding magistrates' pensions, he stated that the current level – the equivalent of 80% of the last gross salary – is “abnormal” related to the contributory system and the principle of equity:
“I want you to think that a pension with which a magistrate retires today is almost 5,000 euros. But think that an average pension in Romania is 500… 550-600 euros today. There is a very big difference between the average pension and the magistracy pension, and then these things, that I like, that I don't like, must be corrected. It's a problem of having a fair system as much as possible.”
What would be the correct pension for a magistrate, in Bolojan's view
According to his proposal, the pension would be reduced to 70% of the last salary, i.e. approximately 3,500 euros net, from which the 10% CASS will be applied, resulting in an average pension of approximately 3,200 euros net monthly.
“It is a pension suitable for the vision of a magistrate. Consider that it is a pension that very few Romanians collect after a working life of 40 years, 35 years, and so on, which is based on contribution and, however we would say, at what it is today in Romania, it is a pension that ensures a decent old age anyway, to say nothing more”. concluded Ilie Bolojan.
He added that the transition period to the new system is still a point of negotiation: “The longer the transition, the later the effects will be felt, but the tensions in the system will be lower.”
The Prime Minister explained that Romania can no longer support, from a social and economic point of view, retirements at the ages of 48-50:
“Only 53% of Romanians between the ages of 55 and 64 are active on the labor market, although this category should be involved in economic activity. Our country is in second last place in Europe for the economically active population in this age category. If we want to have more money in the state budget, this money must be collected from working people. If we want to put the economy on a healthy basis, we must take measures to have more people in the economy, we only have half in economics.”
Bolojan also stated that there are almost 950,000 Romanians who benefit from disability pensions, which further affects the balance of the system.
